Cryptocurrency miners are feeling the pinch from Bitcoin’s sharp price decline, with only five mining companies managing to stay profitable amidst the challenging conditions.
According to F2Pool, the recent plunge in Bitcoin’s value to $53,000 has placed immense pressure on cryptocurrency miners. Only five mining facilities now find themselves in the green financially.
This predicament has caused considerable strain among miners who are compelled to sell their Bitcoin rewards continuously to sustain their operations, especially during market downturns.
Data unveiled by F2Pool early Friday reveals that mining rigs employing Application Specific Integrated Circuits (ASICs) less efficient than 23 watts per terahash (W/T), and operating at an electricity rate of $0.08 per kilowatt-hour (kWh), are currently running at a loss.
F2Pool’s data highlights that only four models from Antminer and one from Avalon are profitable, given that Bitcoin’s price remains above $53,100. Other mining rigs are currently generating less value than their operational costs.
Miners, who provide crucial computational power to blockchain networks in exchange for token rewards, face steep operational expenses, necessitating constant liquidation of these rewards. This practice has exacerbated selling pressure in the market, particularly during price declines.
In June, amid Bitcoin’s fluctuation between $65,000 and $70,000, miners offloaded more than $1 billion worth of Bitcoin in a span of just two weeks, contributing to the downward pressure on its price.
*This article does not constitute investment advice.
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